Boeing postponed its target to reach a production rate of 47 aircraft per month on the 737 program to early 2027, missing its 2026 goal of about 500 deliveries as wing production constraints and higher costs weighed on third-quarter financial results.
The planemaker reported third-quarter revenue of $24.19 billion alongside a net loss of $116 million, marking a sharp narrowing from the $5.34 billion loss recorded during the same period a year earlier when a major charge hit the 777X program. Free cash flow climbed to $464 million while operating cash flow reached $1.5 billion for the quarter ended September 30. Despite those gains, the commercial airplanes unit lost $697 million from operations as segment revenue slipped 3% to $10.72 billion.
Commercial Airplane Losses Offset Defense Gains
Commercial aerospace operations faced mounting pressure during the quarter from an unfavorable delivery mix, rising supply chain expenses, and higher projected costs associated with upcoming production rate adjustments according to company disclosures. The commercial unit registered an operating margin of negative 6.5% while delivering 161 commercial airplanes.
Carrying the financial weight, the Defense, Space and Security division posted a 15% revenue jump to $7.94 billion with operating earnings reaching $492 million helped by gains including asset sales. Global Services also recorded steady 4% growth to support the quarter’s results, generating US$5.57 billion in revenue and US$1.02 billion in operating profit.
Total nine-month revenue reached $71.0 billion, up 8% compared to the prior year. Boeing’s balance sheet continued to show progress as net debt ended the quarter near $25.2 billion, down from $30.4 billion a year earlier, while total debt remained unchanged at US$45.9 billion.
Production Ramps Slip Past 2026 Deadlines
Chief Executive Officer Kelly Ortberg told investors that stabilizing the 737 production rate is taking a little bit longer
than expected due to slower-than-anticipated wing manufacturing output. The company had previously planned to reach 47 jets per month by the summer of 2026 but now targets that milestone for early 2027 before pushing toward a rate of 52 planes a month in the second half of 2027 across its facilities.
I know everybody wants us to go faster but we’re going to do it right.
Kelly Ortberg, Chief Executive Officer
Widebody production also experienced adjustments, with the 787 holding steady at eight aircraft per month rather than ten, and full-year 787 deliveries anticipated at the low end of the 90 to 100 range. Meanwhile, the 777-9 program remains on track for certification by mid-2027, with management projecting approximately 10 to 15 deliveries for the aircraft type next year.
Certification Milestones Contrast With Stock Decline
The production adjustments sent shares tumbling about 9% in afternoon trading after touching an intraday low of $168.42, which marked the lowest stock price level since April 2025.
Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy’s sixth-generation fighter aircraft, are important steps as we continue building on our progress.
Kelly Ortberg, Chief Executive Officer
Management previously outlined multiyear free cash flow projections and secured significant defense wins, including a U.S. Navy selection for the F/A-XX next-generation fighter program and a U.S. Army contract to build 96 AH-64E Apache helicopters for Poland.